Free UAE Tool — Updated 4 August 2026
Gratuity Calculator UAE 2026 — the MoHRE formula
This free MoHRE gratuity calculator runs the end-of-service formula that the Ministry of Human Resources and Emiratisation (MoHRE) administers: 21 days of basic wage for each of the first five years and 30 days for each year after that, capped at two years' wage, under Article 51 of Federal Decree-Law No. 33 of 2021. MoHRE does not publish a general gratuity calculator for private-sector staff, so this UAE gratuity calculator applies the published statutory rates instead of a ministry tool.
It covers private-sector employees on the UAE mainland and in free zones that follow federal labour law (JAFZA, DMCC, RAKEZ, DAFZ, SAIF, Masdar, KIZAD, Meydan). DIFC, ADGM, UAE and GCC nationals and domestic workers sit outside it — see the scope notes below.
This page is the tool. If you want the arithmetic explained rather than automated — the gratuity formula worked line by line, resignation versus termination, part-years and the basic-salary definition — read how to calculate gratuity in UAE instead.
Estimate only. Velmont Crest provides advisory, preparation and support — not legal advice or an official statement of entitlement. See full disclaimer at the foot of the page.
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The formula
The Article 51 maths, step by step.
First 5 years
21 days / year
21 days of basic salary per year of service for the first 5 years.
After year 5
30 days / year
30 days of basic salary per year for every additional year beyond year 5.
Statutory cap
2 years basic wage
Total gratuity is capped at 2 years of basic wage (24 × monthly basic), per Article 51(7).
Formula
Daily basic wage = monthly basic ÷ 30
Gratuity (≤5 yr) = daily basic × 21 × years
Gratuity (>5 yr) = (daily basic × 21 × 5)
+ (daily basic × 30 × additional years)
Partial year = full-year amount × (months ÷ 12)
Cap = total ≤ 24 × monthly basicStatutory basis: Federal Decree-Law No. 33 of 2021, Articles 51–53 · Cabinet Resolution No. 1 of 2022, Articles 29–30 · Cabinet Resolution No. 96 of 2023 (Voluntary Alternative Savings Scheme).
Worked examples
Three cases we've actually run.
Click any example to load it into the calculator above and verify the result yourself.
The ministry position
Is there an official MoHRE gratuity calculator?
Not for private-sector employees. When we checked MoHRE's own services directory on 4 August 2026, the ministry published the entitlement rules and the governing law, plus a dues calculator for domestic workers — who fall under a separate statute, Federal Decree-Law No. 9 of 2022 — but no general end-of-service estimator for staff on federal labour-law contracts. So a search for a MoHRE gratuity calculator will always land you on a third-party tool. That is fine, provided the tool applies the statutory rates below and nothing else.
The test is simple. A calculator is only worth trusting if it uses the last basic wage and not the total package, applies 21 days per year for the first five years and 30 days thereafter, pro-rates the final part-year, and stops at two years' wage. Any tool that lets you enter a gross salary with housing and transport folded in will overstate the figure, often by a third or more.
| Rule MoHRE applies | What it says | Primary source (checked 4 Aug 2026) |
|---|---|---|
| Minimum service | One or more years of continuous service; days of unpaid absence are excluded from the service period | Art. 51(2), 51(4), Federal Decree-Law 33/2021 — uaelegislation.gov.ae |
| First five years | The wage of 21 days for each year of the first five years of service | Art. 51(2)(a) — uaelegislation.gov.ae |
| Beyond five years | The wage of 30 days for each year in excess of five | Art. 51(2)(b) — uaelegislation.gov.ae |
| Wage base | Last basic wage only — excludes housing, transport, utilities and furniture allowances | Art. 51(5); u.ae end-of-service page, updated 6 Oct 2025 |
| Part years | Entitlement for fractions of a year in proportion to time served, once one year is complete | Art. 51(3) — uaelegislation.gov.ae |
| Ceiling | Total gratuity must not exceed two years' wage | Art. 51(6) — uaelegislation.gov.ae |
| Deductions | Employer may deduct amounts due by law or by a judgment | Art. 51(7) — uaelegislation.gov.ae |
| Payment deadline | Wages and all other entitlements payable within 14 days of the end of the contract | Art. 53 — uaelegislation.gov.ae |
| Part-time and other models | Contract hours per year ÷ full-time hours per year × 100 gives the percentage, applied to the full-time entitlement | Art. 30, Cabinet Resolution 1/2022 — u.ae |
| Voluntary Savings Scheme | Optional alternative: employer contributes 5.83% of monthly basic below five years' service, 8.33% above, into an SCA-approved fund instead of accruing gratuity | Cabinet Resolution 96/2023 — u.ae, updated 6 Oct 2025 |
One note on the daily rate. Neither Article 51 nor the u.ae guidance states the divisor used to turn a monthly basic into a daily wage, which is why online calculators disagree. This tool divides by 30, and the ministry's own Savings Scheme percentages line up with that reading: 21 days over a 360-day year is 5.83%, and 30 days is 8.33% — exactly the two contribution rates published for the alternative scheme. That is our reasoning from the published rates, not a rule MoHRE states in those terms.
Worked example — 7 years 6 months, basic AED 12,000
An employee on a mainland fixed-term contract leaves after seven years and six months of continuous service, with a last basic wage of AED 12,000 a month and no unpaid absence.
Daily basic wage = 12,000 ÷ 30 = AED 400
Years 1-5 = 400 × 21 days × 5 years = AED 42,000
Years 6-7 = 400 × 30 days × 2 years = AED 24,000
Final 6 months = 400 × 30 days × 0.5 years = AED 6,000
-----------
Gratuity due AED 72,000
Two-year ceiling = 12,000 × 24 = AED 288,000
Cap does not bite — AED 72,000 is payable in full,
within 14 days of the contract ending (Art. 53).Swap the basic wage for a gross package of, say, AED 18,000 and the same arithmetic returns AED 108,000 — AED 36,000 too much. That single input is the difference between a settlement that clears and one that ends up in front of MoHRE.
Scope
Who this is for.
This UAE gratuity calculator handles the gratuity calculation for most private-sector employees under the 2021 UAE Labour Law — resignation or termination, limited (fixed-term) contracts, and any mix of the 21-day and 30-day accrual rates. If you are searching for an end of service calculator UAE — or an end of service benefits UAE calculator — for a mainland or federal-law free-zone role, this covers your case. A few situations sit outside the federal gratuity scheme and need a different tool or a licensed advisor.
In scope
- ·Private-sector employees on the UAE mainland
- ·Free zones that follow federal labour law (JAFZA, DMCC, RAKEZ, DAFZ, SAIF, Masdar, KIZAD, Meydan)
- ·Full-time employees on the now-mandatory fixed-term contracts
- ·Part-time employees (with the part-time toggle, applying Art. 30 CR 1/2022)
- ·Employees with 1+ years of continuous service
Out of scope
- ·DIFC employees — covered by DEWS scheme (or qualifying alternative); monthly contributions replace lump-sum gratuity
- ·ADGM employees — separate ADGM Employment Regulations 2024 apply
- ·UAE and GCC nationals — GPSSA pension contributions, not federal gratuity
- ·Domestic workers — separate regime under Federal Decree-Law 9 of 2022
- ·Employers enrolled in the Voluntary Alternative Savings Scheme (Cabinet Resolution 96/2023) — post-enrolment benefit is a fund balance
- ·Article 44 cases where a court has ordered forfeiture
UAE gratuity FAQs
Gratuity questions we get every week.
How is gratuity calculated in the UAE in 2026?
Under Federal Decree-Law No. 33 of 2021, Article 51, gratuity is calculated as 21 days of basic salary per year for the first 5 years of service, then 30 days of basic salary per year for every additional year. The total payment is capped at 2 years of basic salary. Calculation is on the last basic salary only — allowances are excluded.
Am I entitled to gratuity if I resign?
Yes. Under the post-2022 UAE Labour Law (Federal Decree-Law 33 of 2021), an employee who has completed at least 1 continuous year of service is entitled to the full calculated gratuity on resignation. The old 1/3 and 2/3 reductions from the 1980 law no longer apply to current fixed-term contracts.
Is gratuity calculated on basic salary or total salary?
Gratuity is calculated on the last basic salary only, per Article 51(5). Housing allowance, transport allowance, utility allowance, commissions, bonuses, and overtime are excluded from the calculation base.
What is the maximum gratuity I can receive in the UAE?
The maximum is two years of basic salary (24 × monthly basic wage), per Article 51(7). Any calculation that exceeds this cap is reduced to the cap amount.
Do I get gratuity if I'm dismissed under Article 44?
Not automatically forfeited. Under Federal Decree-Law 33 of 2021, gratuity is no longer automatically forfeited for Article 44 dismissals. Forfeiture now requires a court ruling on proven grounds — a major change from the previous 1980 law. If you have been dismissed under Article 44, take qualified legal advice before assuming your gratuity is lost.
Does probation count toward gratuity service?
If you complete probation and continue working, your full service time (including the probation period) counts toward the 1-year gratuity threshold and the calculation. Employees dismissed during probation do not qualify, because they have not yet reached 1 continuous year of service.
How does unpaid leave affect my gratuity?
Unpaid leave days are deducted from your continuous service period when calculating gratuity, per Article 51(4). Paid annual leave, sick leave, and maternity leave count fully toward your service period.
When must my employer pay my gratuity?
Within 14 days of your last working day, per Article 53. The same 14-day window applies to all final settlement entitlements — gratuity, unpaid wages, leave encashment, and any other amounts due.
Does this calculator work for DIFC or ADGM employees?
No. DIFC employees are covered by the DIFC Employee Workplace Savings (DEWS) scheme or a qualifying alternative — monthly employer contributions replace lump-sum gratuity. ADGM employees are covered by the ADGM Employment Regulations 2024, which use different procedures. Use a DIFC- or ADGM-specific calculator, or speak to a UAE-licensed advisor for your case.
What changed with the Voluntary Alternative End-of-Service Savings Scheme?
Cabinet Resolution No. 96 of 2023 introduced an optional savings scheme that took effect on 1 November 2023. Employers can opt to contribute to an SCA-approved investment fund (5.83% of basic salary monthly for the first 5 years, 8.33% thereafter) instead of accruing traditional gratuity. Participation is voluntary at the employer level. Gratuity accrued before enrolment is preserved; this calculator estimates traditional gratuity only.
Can my employer deduct anything from my gratuity?
Yes, under Article 29 of Cabinet Resolution 1 of 2022 — proven outstanding loans, recoverable overpayments, court-ordered debts, and damages caused by proven negligence may be deducted. The employer must be able to substantiate each deduction with documentation.
Do UAE nationals get gratuity?
UAE and GCC nationals in the UAE private sector are covered by GPSSA pension contributions, not the federal gratuity scheme. Their end-of-service entitlement comes through the pension scheme rather than the Article 51 gratuity calculation.
What if I worked less than 1 year?
Under Article 51(1), gratuity entitlement begins only at 1 continuous year of service. Below that threshold, no statutory gratuity is payable. Your contract may, of course, offer better terms than the statutory minimum — check the wording of your employment contract.
How is gratuity calculated for part-time work?
Part-time gratuity is calculated as (contracted annual hours ÷ full-time annual hours) × 100 × full-time gratuity amount, per Article 30 of Cabinet Resolution 1 of 2022. The calculator above includes a part-time toggle that applies this formula.
What if my contract was an unlimited-duration contract before 2022?
All mainland contracts had to convert to fixed-term by 31 December 2023, per Ministerial Resolution 27 of 2023. Service spanning both the pre-2022 and post-2022 regimes can raise transitional questions. For tenure that crosses both periods, get specific advice — this calculator applies the current Federal Decree-Law 33 of 2021 formula throughout.
What is the difference between limited and unlimited contract gratuity in the UAE?
Since Federal Decree-Law 33 of 2021, the UAE no longer recognises unlimited contracts — every mainland contract is now a limited (fixed-term) contract. Under the old limited vs unlimited contract gratuity rules, resigning on an unlimited contract triggered 1/3 and 2/3 reductions; those reductions are gone. Today, on a limited contract, an employee with 1+ years of continuous service receives the full 21-day / 30-day gratuity whether they resign or are terminated. This UAE gratuity calculator applies the current single fixed-term rule.
What is the 21-day and 30-day rule in UAE gratuity calculation?
The UAE gratuity calculation formula pays 21 days of basic salary for each of the first 5 years of service and 30 days of basic salary for each year after that, per Article 51. The daily basic wage is your monthly basic salary divided by 30, so 21 days is roughly 70% of a month and 30 days is one full month of basic pay per year. The total end-of-service benefit is then capped at 2 years of basic salary.
Is this an official UAE end of service calculator?
This free end of service calculator UAE gives a non-binding estimate based on the published Federal Decree-Law 33 of 2021 formula — it is not an official MOHRE tool or a statement of legal entitlement. Velmont Crest prepares and supports end-of-service settlements as an advisory firm; we are not a tax agent, law firm, or FTA representative. For a binding figure on a complex case, book a consultation or confirm with MOHRE.
Important — please read before relying on this calculation
This calculator provides a non-binding estimate of end-of-service gratuity for private-sector employees on the UAE mainland under Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022 (Articles 51–53 and Article 29 respectively), as in force on the date shown above.
It does not cover: employees of entities in the Dubai International Financial Centre (DIFC) or Abu Dhabi Global Market (ADGM); UAE or GCC nationals contributing to GPSSA; domestic workers under Federal Decree-Law No. 9 of 2022; or employees whose employer has enrolled in the Voluntary Alternative End-of-Service Savings Scheme under Cabinet Resolution No. 96 of 2023 (for which the post-enrolment benefit is a fund balance, not a calculable gratuity figure).
It does not address: disputes under Article 44 where a court has ordered forfeiture; permissible deductions under Article 29 of Cabinet Resolution 1 of 2022; transitional issues for service that spans the pre- and post-2022 regimes; or fact-specific issues such as proven misconduct, unauthorised absence, or contract irregularities.
Velmont Crest Accounting provides advisory, preparation and support services in accounting, payroll, VAT and corporate tax compliance. We are not a registered FTA tax agent, a licensed legal practice, or an FTA/MOHRE representative. Nothing on this page or in the calculator output constitutes legal advice or an official statement of your entitlement. For binding determinations, refer to your employment contract, your MOHRE-registered file, and a UAE-licensed legal advisor.
By using this calculator, you accept that Velmont Crest Accounting and its affiliates accept no liability for any decision taken in reliance on the result.
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